Across Protocol, a highly anticipated cross-chain bridge protocol, successfully raised $10 million in November 2022 at a valuation of $200 million. The funding round saw participation from notable venture capital firms including Hack VC, Placeholder, and Blockchain Capital. This investment not only underscores the recognition of Across Protocol's technology and potential but also marks its significant position in the realm of cross-chain interoperability.
At that time, Across Protocol adopted a unique financing strategy: investors purchased 50 million Across Success Tokens from Risk Labs. Each Success Token is set to mature on June 30, 2025, at which point it will convert into 1 ACX token and an ACX call option with a strike price of $0.50.
This innovative approach, proposed by the synthetic assets protocol UMA, allows projects to raise funds without offering token discounts, showcasing Across Protocol's cutting-edge thinking in financial innovation.
In the following article, we will delve into the distinctive features of Across Protocol, its intention-driven cross-chain interoperability solutions, and how it is setting new standards in the cross-chain bridging space.
01
Innovative Cross-Chain Solutions
Intent-Driven Cross-Chain Interoperability
Across Protocol is an intent-based cross-chain bridge protocol designed to provide fast and low-cost cross-chain solutions.
Across Protocol introduces an innovative architecture that leverages intents to achieve cross-chain interoperability. An intent is a type of order where users specify their desired outcome without needing to detail the execution path. Relayers compete to fulfill these intent orders, ensuring the best balance of speed and cost for cross-chain operations. This design not only simplifies the user experience but also enhances system efficiency and security.
Since its launch, the intent-driven design philosophy has addressed many challenges faced by existing cross-chain protocols. Users no longer need to understand complex cross-chain processes; they simply specify the outcome they want, and the Across Protocol’s relayer network competes to fulfill these orders, ensuring that users’ needs are met swiftly.
Security and Settlement Mechanism
To ensure operational security, Across Protocol employs a separated settlement mechanism. Users' funds are held in escrow within the settlement protocol and are only released to relayers once the user's intent has been verified as completed. This design separates rapid order execution from complex message verification, enabling Across Protocol to perform fast cross-chain operations while maintaining security. Through an optimistic verification mechanism, Across Protocol reduces settlement costs and enhances overall system efficiency.
Across+ Eliminates User Experience Pain Points
Across+ is a key component of the Across Protocol, enabling developers to seamlessly integrate cross-chain operations into their dApps through bridge hooks. Users no longer need to switch tabs for bridging operations; the entire process is completed in the background, providing a smooth, Web2-like user experience. By utilizing standard cross-chain limit orders and protocol actions, users can perform complex cross-chain operations with just one signature, such as liquidity pooling and staking, purchasing NFTs, or borrowing.
Modular Cross-Chain Intent Settlement Layer
Across V3 also includes Across Settlement, a modular cross-chain intent settlement layer that allows any RFQ-based DEX or application to offer optimal execution of cross-chain swaps. By batching settlements into a single message and utilizing optimistic verification, Across Settlement significantly reduces settlement costs and enhances efficiency.
02
Leading the Way for Cross-Chain Intent Standards
In May 2024, Uniswap Labs and Across Protocol jointly proposed a new cross-chain intent standard, ERC-7683, aimed at establishing a unified framework to support intent-based cross-chain operations. This standard provides a standardized API for cross-chain transaction execution systems, including a universal CrossChainOrder structure and an ISettlementContract smart contract interface.
The introduction of this standard marks a new phase in the standardization and interoperability of cross-chain intent systems.
By defining a unified interface and structure, ERC-7683 will simplify cross-chain operations, reduce complexity, and enhance the efficiency and reliability of cross-chain transactions. This not only significantly improves user experience but also offers greater flexibility and scalability for developers.
Intent-based systems have become the preferred solution for users to interact across chains by abstracting the complexities and time constraints of traditional bridging operations.
However, one of the main challenges faced by cross-chain intent systems is how to acquire sufficient liquidity and an active relay network. As the number of chains continues to increase, this challenge becomes more severe, leading to high costs, long wait times, and high failure rates for users.
By implementing standards, cross-chain intent systems can interoperate and share infrastructure such as order propagation services and fill networks, thus improving user experience through increased competition. The implementation of the ERC-7683 standard will enable multiple cross-chain intent systems to operate within the same framework, sharing resources and information, thereby enhancing the overall efficiency and user satisfaction of the system.
Meanwhile, the ERC-7683 standard also considers issues of security and ease of use, recommending the use of Permit2 to simplify the authorization process.
Permit2 allows exchangers to approve both token transfers and the order itself with a single signature, which not only increases operational transparency but also enhances security. In traditional authorization models, users need to perform two separate signatures, whereas Permit2 simplifies this process to a single signature, reducing potential security risks and operational complexity.
Practical Applications and Industry Impact
Across Protocol continues to push the boundaries of cross-chain interoperability with its innovative cross-chain intent standards and architecture.
The proposal of the ERC-7683 standard is not only a milestone in the development of cross-chain intent systems but also lays a solid foundation for future blockchain interoperability.
With this standard, developers can more easily build and integrate cross-chain operations, and users will enjoy a more convenient and secure cross-chain transaction experience. As the ERC-7683 standard becomes more widely adopted, cross-chain interoperability will become more efficient and widespread, and Across Protocol will continue to play a key role in this field.
03
Black Swan Event
Despite Across Protocol's outstanding performance in cross-chain interoperability, it has encountered major security incidents during its development.
On December 26, 2023, renowned blockchain analyst ZachXBT issued a risk alert pointing out that Across Protocol’s document links directed users to a fake Discord server, resulting in the loss of approximately $880,000 worth of aEthWBTC.
This incident quickly drew widespread attention from the community, and the Across team promptly responded by removing the fake link to prevent further losses. This security incident exposed the deficiencies in Across Protocol's security measures and reminded all blockchain projects that rapid development must be accompanied by a strong focus on security to ensure the safety of user assets.
With Uniswap Labs collaborating with Across Protocol to propose the new cross-chain intent standard ERC-7683, whether Across Protocol can rebuild trust through this partnership has become a focal point of the industry.
Uniswap, as a leader in the decentralized trading space, provides Across Protocol with an excellent opportunity to enhance its image through its stringent security standards and extensive user base. By introducing a unified cross-chain intent standard, Across Protocol can not only improve its technical prowess but also leverage Uniswap’s influence to strengthen user trust.
Whether this collaboration can completely redeem Across Protocol depends on its ability to continuously improve security measures and prevent similar incidents from happening again. Only by advancing both technical innovation and security measures can Across Protocol truly earn users' trust and achieve sustainable long-term development.
Conclusion
With its intent-driven architecture and innovative cross-chain solutions, Across Protocol brings new possibilities to the field of cross-chain interoperability.
However, security incidents remind us that technological innovation must be built on a foundation of security.
The collaboration with Uniswap provides Across Protocol with a critical turning point. Through stringent security standards and a unified cross-chain intent standard, Across Protocol is poised to make significant strides on the path to rebuilding trust.
In the future, as the demand for cross-chain operations grows, Across Protocol is set to occupy an increasingly important position in the industry.
